Kim Dong-yeon, Deputy Prime Minister of South Korea and Minister of Strategy and Finance, revealed early this week that While the South Korean government and its local financial authorities are actively discussing the possibility of applying a policy on Bitcoin taxation, at a press conference, the Deputy Prime Minister Minister Kim said that the local Bitcoin government the government does not intend to include any Bitcoin tax policy in the amendment of the fiscal law of 2018.
South Korea should follow Japan's fiscal policy
Since the beginning of this year, the South Korean government has introduced light regulatory frameworks for Bitcoin companies and investors who are structurally similar to those policies imposed by the Japanese Government and the Japan Financial Services Agency (FSA).
Currently, cryptocurrency trading and trading platforms have the freedom to operate in both regions, with minimal government interference and oversight.
A major initiative to facilitate the growth of the Japanese cryptocurrency market, the Japanese government eliminated the eight percent consumer tax on Bitcoin in July, with the intention of supporting the rate of rapid growth of the Japanese Bitcoin industry.
It is likely that the South Korean government will apply a tax policy similar to that of the Japanese government, since most of the regulatory frameworks provided by South Korea's financial authorities in 2017 focused on freedom and flexibility to companies, like Japan
Discussion on the centralization of trade
Several agencies, United Bitcoin and government representatives expressed their concerns about the centralization of trade in Korea from South. Bithumb, the largest cryptocurrency market in South Korea, the world's second largest cryptocurrency trading platform behind Bitfinex, accounts for nearly 70% of Bitcoin transactions in South Korea.
South Korean Ministry of Strategy and Finance Banks Test Bitcoin
In addition, some of the country's largest and most influential financial institutions such as Shinhan, South Korea South – the largest commercial bank, has already begun testing Bitcoin's portfolio and safe systems, with a long-term strategy to provide a safe and secure platform with which Bitcoin users can store funds.
users, especially large investment firms and institutional investors, is needed, given that Bithu mb was hacked twice this year
However, it is also important to consider the structure of the Bitcoin network and its decentralized nature. Because the Bitcoin network exists on a peer-to-peer protocol, the safest way to store Bitcoin is on non-custodial wallet platforms, in which the user gets absolute control over private keys and funds.
very optimistic that the South Korean government began to recognize the rapid growth rate of Bitcoin and has drafted several solutions to standardize the South Korean Bitcoin industry.